Advance Tax and How to Avoid Interest on Advance Tax
-Dr. Lalit Kumar Setia*
Advance Tax:
The income tax act contains provisions of paying taxes along with the earning revenues. Every year the companies not only pay advance tax but also advertise in newspapers their amounts being paid as advance taxes in order to show their commitment to earn the revenues.
The income tax act contains provisions of paying taxes along with the earning revenues. Every year the companies not only pay advance tax but also advertise in newspapers their amounts being paid as advance taxes in order to show their commitment to earn the revenues.
The advance
tax means the amount of income tax which is paid in advance and settled from
the tax payable amount at the end of the year. The advance tax is required to
be paid as per the due dates provided by the income tax department.
The advance
tax is applied to all individuals except senior citizens who donot run any
business. If the tax liability of an individual become Rs. 10000 (Ten
Thousands) or more, in a financial year; it becomes mandatory to pay advance
tax.
In case of businesses, only the presumptive businesses with business
income less than Rs. 2 Crores are exempt from advance tax. The due dates for
the payment of advance tax are respectively 15th June, 15th
September, 15th December, and 15th March for payment of
15%, 45%, 75% and 100% of advance tax.
In case, the income tax and advance tax
is not paid on time; interest is imposed by Income Tax Department u/s 234 (A),
234 (B), and 234 (C).
*Copyright ©
2018 Dr. Lalit Kumar. All rights reserved. Dr. Lalit Kumar is working
as Assistant Professor (Faculty of Financial Management), HIPA,
Gurugram (Delhi-NCR), India (Asia).
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4. Accounts Administration and Prevention of Mal-practices
5. Government Accounting and Audit Mechanisms
6. Workshop on Taxation Matters (Income Tax Computation and submission of e-TDS)
7. Duties of DDOs in Taxation Matters (Income Tax and Goods and Services Tax)
8. Corruption and Governance - Tools in the hands of Ruler
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You might be interested in:
1. Tax Deduction at Source for Deductors
3. How to save money from being covered under taxes (Tax Saving Options)?
4. Accounts Administration and Prevention of Mal-practices
5. Government Accounting and Audit Mechanisms
6. Workshop on Taxation Matters (Income Tax Computation and submission of e-TDS)
7. Duties of DDOs in Taxation Matters (Income Tax and Goods and Services Tax)
8. Corruption and Governance - Tools in the hands of Ruler
9. Important Questions on Goods and Services Tax
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